Scientific articles contain valuable management implications, but are usually not very easy to digest. We summarize the core results so that you can use the latest research findings for your company.
What is the article about?
The effectiveness of key account management (KAM) largely depends on how well it is strategically embedded within a company. The authors of this study summarize the strategic direction and organizational integration of KAM under the concept of key account management orientation (KAMO). KAMO encompasses both a company’s attitude toward KAM (e.g., top management commitment) and the behavior of individual employees (e.g., cross-functional collaboration).
This study examines how KAMO influences business performance. Specifically, it explores how KAMO impacts a company’s ability to build and maintain business relationships, manage strategic customers effectively, and leverage differentiation advantages. The authors conducted a survey of 568 (Key) Account Managers from European supplier companies across various industries and sizes.
What are the key findings?
The study demonstrates that KAMO is a fundamental prerequisite for companies to maintain strong relationships with key accounts and develop essential KAM capabilities. It fosters cross-functional collaboration, enhances resource utilization, and accelerates strategic decision-making, establishing KAM a core element of corporate strategy. As a result, companies can offer more tailored customer solutions, leading to higher customer satisfaction, greater market penetration, and improved long-term profitability.
What does this mean for companies?
To fully leverage the potential of KAM within your company, the following measures should be taken:
- Strengthen relationship-building capabilities: Continuously improve communication and conflict resolution skills to strengthen trust and deepen relationships with key accounts. Implement cross-functional KAM teams and raise awareness among employees who interact with customers.
- Avoid over-formalization: Rigid rules create bureaucratic obstacles in KAM. Instead, define clear decision-making frameworks that allow Key Account Managers to flexibly respond to customer needs.
- Use differentiation as a competitive advantage: Secure your competitive edge by tailoring solutions to your key accounts’ needs. Leverage selected key accounts as sparring partners to drive innovation and expand your value proposition.
Original text:
Fakhreddin, F., Foroudi, P., & Kooli, K. (2024). The influence of key account management on competitive advantage and firm performance: A dynamic capability approach. Industrial Marketing Management, 124, 266–286.